Hankook Tire chairman indicted for alleged unfair trading

Prosecutors indicted Hankook Tire and Technology Chairman Cho Hyun-bum without detention on Friday for breach of trust.

Hankook Tire and Technology Chairman Cho Hyun-bum [YONHAP]

Prosecutors indicted Hankook Tire and Technology Chairman Cho Hyun-bum without detention on Friday for breach of trust.

The 51-year-old Cho has been indicted for alleged unfair trading with WooAm Construction, a company with which Cho has close ties, alongside accepting bribes.

It came as Cho is already on trial for alleged embezzlement of around 20 billion won ($16 million).

Chang Sun-Woo, CEO of Kukdong Oil & Chemicals, and Chang Sun-Woo, CEO of Gojin Motors, were also indicted for improper solicitation. Kukdong's Chang is the younger brother of Gojin's Chang.

Cho allegedly helped Kukdong's Chang to win orders for the construction of Hankook Tire's plants overseas and in Korea. Chang founded WooAm Construction in 2010 and is the largest shareholder with 70 percent of shares as of the end of 2022.

Cho allegedly took an undisclosed amount of money in bribes and an imported car from Gojin Motors' Chang. Chang offered the car after his brother's request. Gojin Motors is a local importer of Audi.

"The exact amount of bribes cannot be specified at the time," said the prosecutors.

Cho is also indicted for similar trading with Chang on the construction of his medical equipment company, Arum Dentistry.

In March, Cho was arrested for charges of embezzlement and illicit inter-affiliate support.

He allegedly used corporate money for personal use such as lending it to a company of an executive he has close ties with, buying imported cars and paying for house repairs.

Cho allegedly inflicted some 13 billion won worth of financial damage to Hankook Tire as he made it to buy tire molds from its affiliate MKT, which now goes by the name of Hankook Precision Works, at unreasonably high prices. The total amount of his embezzlement mounts to 20 billion won, according to prosecutors.

BY SARAH CHEA, PARK HYEON-JUN [chea.sarah@joongang.co.kr]